Enhanced Capital Allowances
ECAs provide 100% tax relief for businesses that invest in energy or water saving equipment listed on the Energy or Water Technology List. For a business, the allowance is an up-front tax relief delivering a significant cash flow boost and shortening the payback period on the investment.
Technologies supported by the scheme include the following:
Boilers, refrigeration equipment, lighting, combined heat and power plants, motors, warm air and radiant heaters, heat pumps for space heating, efficient showers and toilets and rainwater harvesting equipment.
The tax relief, whilst attractive, in practice can be difficult to obtain due to the evidence and documentation required to support such claims.
Capitus Regeneration & Sustainability can:
- Advise the design team on the operation of the scheme
- Collate all relevant cost information and data in support of an ECA claim
- Prepare, submit and negotiate a claim for ECAs with HMRC
- Advise on the use of ECAs for the adoption of Green Leases
- Assist with ECA certification for Combined Heat and Power Schemes
- Carry out an ECA lighting audit (Establishment of ECAs for lighting installations through survey and specification analysis)
- A significant tax incentive to encourage investment in energy and water efficient technologies such as:
Combined Heat & Power Plants Energy efficient heating and lighting- Can be used to encourage adoption of Green Leases
- Difficult to obtain in practice